The Dow Jones Industrial Average lost 1,063 points, or 3.12%, to close at 32,997.97. The tech-heavy Nasdaq Composite fell 4.99% to finish at 12,317.69, its lowest closing level since November 2020. Both of those losses were the worst single-day drops since 2020.

The S&P 500 fell 3.56% to 4,146.87, marking its second worst day of the year.

The moves come after a major rally for stocks on Wednesday, when the Dow surged 932 points, or 2.81%, and the S&P 500 gained 2.99% for their biggest gains since 2020. The Nasdaq Composite jumped 3.19%.

Those gains had all been erased before noon in New York on Thursday.

"If you go up 3% and then you give up half a percent the next day, that's pretty normal stuff. ... But having the kind of day we had yesterday and then seeing it 100% reversed within half a day is just truly extraordinary," said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.